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October 11, 2008 1:11:06 AM CDT

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FCC to Examine Cancellation Fees for Cable, Phone, Web

Posted May 31, 08 1:02 PM CDT in Business,  Technology 

(Newser) – The FCC says next month’s hearing on cell phone cancellation fees may also include similar charges leveled by cable and Internet providers. Chairman Kevin Martin hopes the hearing will ease consumer tension over the fees, which were among cell phone users’ five most common complaints last year, the Washington Post reports. The fees typically range from $150-200.

Wireless carriers have softened their policies recently, but they insist the fees compensate them for offering cheap phones to consumers. The companies, which want the fees to be part of the regular rates they charge, are also seeking lawsuit protection from disgruntled consumers. But one consumer advocate suggested companies retain customers through better service rather than “indentured servitude.”

Source Washington Post

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Verizon Wireless faces a $1 billion class-action lawsuit from consumers about its termination fees.   (AP Photo/Don Ryan, file)
Consumers spend a monthly average of $200 for wireless phone, cable and Internet services.   (Index Stock)
FCC Chairman Kevin Martin will lead a probe next month into early-termination fees paid by cell phone, cable, and Internet consumers.   (AP Photo/Isaac Brekken)
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FCC  • Verizon  • cell phone industry  • AT&T  • Kevin Martin  • Sprint  • T-Mobile  • fees


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